For the month of July, Australian equities outperformed the broader Asian region with gains of over 5 percent. The Kospi came in second place with a 2.7 percent gain while the Nikkei under-performed to lose 0.1 percent.

Japan's benchmark index widened losses as dollar-yen fell below the 98 handle in afternoon trade and as investors digested the latest batch of corporate earnings. The Nikkei has been steadily declining since hitting a two-month high at 14,953 points on July 19.

"The market has turned from exuberance to pessimism after Prime Minister Abe's election. The main focus has been the reluctance of Japanese companies to spend from the windfall of a weaker yen which shows the uncertainty they feel towards the future," wrote Kelly Teoh, market strategist at IG in a note.

China's benchmark stock index was unable to close above the 2,000 level for a third straight session as caution set in ahead of Thursday's closely-watched official manufacturing purchasing managers index (PMI).

The official Xinhua news agency reported late on Tuesday that China's Politburo would increase support for the real economy while promoting real estate development. The comments boosted property developers, with China Merchants Property leading gains by 4.5 percent and Gemdale up 3.7 percent.

"Further measures are needed to close the gap between potential and targeted growth. We expect consumption tax reforms, incentives for buying big-ticket items, additional fiscal and infrastructure spending and a RRR cut. We maintain our 7.7 percent growth forecast for 2013," wrote analysts at Credit Agricole in a research note.

Sydney's benchmark index pared gains after rising above 5,080 points to hit its highest levels since May 23 on hopes of an interest-rate cut at next week's Reserve Bank of Australia (RBA) meeting.

Meanwhile, the Australian dollar extended losses to a new two-and-a-half-week low at $0.9011 following Tuesday's comments from RBA governor Glenn Stevens.

"The RBA's optimism seems to have evaporated over the past month, if the speech yesterday by governor Glenn Stevens is any guide. We had already been forecasting a 25 basis-point cut rate cut in August to two-and-a-half percent and with the governor giving the green light for lower interest rates, this now looks a sure thing," wrote analysts at National Australia Bank in a report.